Lincare Holdings, Inc. (NASDAQ:LNCR)

CAPS Rating: 3 out of 5

The Company and subsidiaries provides oxygen, respiratory therapy services, infusion therapy services and home medical equipment such as hospital beds, wheelchairs and other medical supplies to the home health care market.

Recs

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Player Avatar ratskins (80.45) Submitted: 3/1/2007 8:49:18 PM : Outperform Start Price: $24.86 LNCR Score: -5.27

There is a lot to like about Lincare. Return on equity is above average for the industry at about 19% as of today (3/1/07). Profit margins are over triple the average for this sector. Plus, they have been reducing shares rather than diluting...a welcome bonus. The annual growth rate is a respectable 13% over the last five years. They have been effective at wisely investing retained earnings instead of frittering the money away. Best of all, shares are available at this time for less than 60% of intrinsic value. Oh yes, did I forget to mention a PEG of .9 and return on invested capital of over 15%?

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